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A firm issues 2 -year bonds with a coupon rate of 4.5%, paid semiannually. The credit spread for this firm's 2 -year debt is 1.2%.

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A firm issues 2 -year bonds with a coupon rate of 4.5%, paid semiannually. The credit spread for this firm's 2 -year debt is 1.2%. New 2 -year Treasury notes are being issued at par with a coupon rate of 5.4%. What should the price of the firm's outstanding 2 -year bonds be if their face value is $1000 ? A. $961.25 B. $4.80 C. $769.00 D. $1,345,75

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